An excerpt:
This memorandum addresses the interaction between tribal economic development bonds under
§7871(f) of the Internal Revenue Code (“Tribal Economic Development Bonds”) and build America
bonds under § 54AA (“Build America Bonds”). This memorandum should not be used or cited as
precedent.ISSUE
Can an Indian tribal government that has received an allocation of volume cap pursuant to §7871(f)
(1) of the Internal Revenue Code (the “Code”) to issue Tribal Economic Development Bonds elect
under § 54AA(d)(1)(C) to issue those bonds as Build America Bonds instead of issuing the bonds as
tax-exempt bonds under §103?CONCLUSION
An Indian tribal government that has received an allocation of volume cap pursuant to §7871(f)(1) to
issue Tribal Economic Development Bonds can elect under §54AA(d)(1)(C) to issue such bonds as
Build America Bonds instead of issuing the bonds as tax-exempt bonds under §103.
Turtle Talk 